The fund, which is distributed in Europe by ATSG, sells options on gold, oil, the FTSE 100 index, selected FTSE 100 stocks and currencies. According to LCS, by selling options, rather than buying them, the fund aims to capitalise on the “fact” that over 80% of options expire worthless, leaving their seller with the premium as profit.
LCS said using this strategy, the traders aim to produce high returns across both rising and falling markets by banking small but frequent profits when either the options expire or they can be repurchased at a lower price.
The fund charges an annual management charge of 1% and no-back end fees. It pays advisers an initial commission of up to 3% plus quarterly trail based on a share of the trading commissions. LCS said historical trading activity indicates that this could equate to as much as 4% or 5% per annum.
LCS said members of the Federation of Independent Financial Advisers will receive a “significant uplift on the trail” with no additional cost to investors.
